Would the Pound Perform Strongly This Week?
Posted by Allison on 9 September 2013, 16:30
Some weeks are invariably better than others when it comes to the currency exchange rates. Would this turn out to be one of them, or would there be another story in store for us to read?
An overview of the currency markets for September 2nd – September 6th 2013
So we start with the British pound against the US dollar, where the closing rate the previous week was 1.5498. This immediately improved on day one, where it closed on 1.5578. However there was a drop the day after before it improved to a week-long high of 1.5658. This unfortunately came on Thursday evening, before it dropped back to 1.5578 to finish the week on Friday night. This was still better than the opening rate had been though.
Would a similar picture become clear with the Euro as well? Here the pound started with an exchange rate of 1.1710 and this immediately improved to 1.1795 on day one. Tuesday was better still as the pound managed to go higher to close on 1.1802. Indeed it would turn out to be a superb week as the pound became stronger and stronger on a daily basis. This resulted in a closing rate of 1.1876 for the pound, with the Euro struggling as a result.
The pound then began on 12.017 against the Hong Kong dollar. Again we saw a good start to the week as the pound rose to 12.081 on day one. It did not achieve quite as good a week as it had against the Euro though, as it had some poor days in between the good ones. The high point of the week turned out to be on Thursday, as the pound rose to 12.144. This dropped back to 12.082 on Friday, although this was still better than we had started out with. The pound was doing well overall so far.
Next we move onto the New Zealand dollar, where the pound began the week on 1.9955. The week did not begin in the best fashion as the pound fell to 1.9935 on Monday evening. There was a lower point to reach though as the pound dropped below the 1.99 mark on Tuesday, falling to 1.9898 in the process. As things turned out, this would set a precedent for the remainder of the week. The pound never recovered from these early losses and continued to weaken throughout the week. Its closing rate was a poor 1.9602 as a result.
Would we experience something similar against the Australian dollar as well? The opening rate here was 1.7354 and this too fell on the first day, falling to close on 1.7316 as a result. The fall on day two was even more pronounced, taking the pound down to 1.7211 as a consequence. Indeed the pattern more or less followed the one seen against the Kiwi dollar, except for a slight improvement on Thursday. This was not enough to prevent the pound falling as low as 1.6994 to close out the week as a whole.
Notable events in the world of currency
Another fall against the Canadian dollar
Here the pound went from 1.6319 to 1.6249 throughout the week.
Much better news against the Swiss franc
Here we saw a better result as the pound climbed from 1.4412 to 1.4705 over the course of the week.
A slight improvement against the Icelandic krona too
The pound managed to climb from 186.712 to close higher on 188.327 this week.
As you can see, this was a two sided week, with the pound achieving some good results against some of the major currencies. Elsewhere it did not perform as well, with the New Zealand dollar and the Australian dollar both managing to outperform it this time around. Perhaps we can hope for better results across the board next week, although we should be grateful for the good news we received in some quarters this week. With plenty to appreciate in some areas, we should be thankful for the good results we saw.